16 Jul 2008

Strong wool business sold

11:58 am on 16 July 2008

PGG Wrightson has completed the sale of its strong wool business for $37.5 million.

PGG is selling the business to the Wool Company, which is a net entity formed by the Wool Industry Network.

PGG will hold a minority shareholding the Wool Company.

The initial sale price was $46 million, but PGG says the lower final price reflects the exclusion of its mid-micron business from the sale, closing debt levels and final due-diligence adjustments.

The mid-micron business has now been sold to the New Zealand Merino company.